MMG WEEKLY – WHAT ARE THEY SAYING THIS WEEK?

Forecast for the Week  

The calendar heats up this week with reports on sales, housing, jobless claims and manufacturing:

  • Right off the bat, Retail Sales will be reported on Monday – and investors will be able to gauge how consumer spending is holding up.
  • In manufacturing news, the Empire State Index out of New York and the Philadelphia Fed Index will be released on Monday and Thursday, respectively.
  • Housing will be in the news this week with Housing Starts and Building Permits for March being reported on Tuesday. Those reports will be followed by the Existing Home Sales report for March, which will be released on Thursday.
  • The weekly Initial Jobless Claims report will be released on Thursday. The report released last week showed that jobless claims rose to their highest level since the week ending January 28. So the markets will be watching this week’s release!

In addition to those reports, Corporate Earnings reports may influence the Stock markets – and as we know, the Bond markets usually move in the opposite direction.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. The chart below shows Mortgage Backed Securities (MBS), which are the type of Bond that home loan rates are based on.

When you see these Bond prices moving higher, it means home loan rates are improving – and when they are moving lower, home loan rates are getting worse.

To go one step further – a red “candle” means that MBS worsened during the day, while a green “candle” means MBS improved during the day. Depending on how dramatic the changes were on any given day, this can cause rate changes throughout the day, as well as on the rate sheets we start with each morning.

As you can see in the chart below, it’s been a wild, volatile few weeks in the markets. I’ll be monitoring all the news closely to see how the markets and home loan rates respond next.

Chart: Fannie Mae 3.5% Mortgage Bond (Friday Apr 13, 2012)

 

Mortgage Market Guide View  

No More Texting and Driving…There’s an App for That!

A study by the National Highway Traffic Safety Administration found that distracted driving was the leading cause in nearly 450,000 accidents and more than 5,000 highway deaths.

Unfortunately, one of the most distracting elements for drivers today is text-messaging technology. The good news is that technology can also help solve this problem. Services – like DriveSafe.ly – have sprung up that eliminate the need to read text messages AND eliminate the need to respond. That’s good news regardless of whether you’re receiving personal or business text messages.

Here’s how it works…You download an application to your phone. Then, before you get in your car to drive, you simply turn the application on. When you receive a text message, the application actually reads it to you…automatically…and out loud. So there’s no need to take your eyes off the road.

Better still… the application automatically sends a reply message stating that you are driving and will respond as soon as you reach a destination that allows you to safely reply.

The application can be used on a variety of phones and there are even different plans – including a free version of DriveSafe.ly as well as family and business plans.

If you receive a lot of text messages while driving, this could be one of the most important safety steps you do this year. Take a few minutes to check it out.

After all, this simple application could save your life or the life of someone you know.

Economic Calendar for the Week of April 16 – April 20

Date

ET

Economic Report

For

Estimate

Actual

Prior

Impact

Mon. April 16

08:30

Retail Sales

Mar

0.3%

 

1.1%

HIGH

Mon. April 16

08:30

Retail Sales ex-auto

Mar

0.3%

 

0.9%

HIGH

Mon. April 16

08:30

Empire State Index

Apr

17.5

 

20.2

Moderate

Tue. April 17

08:30

Housing Starts

Mar

700K

 

698K

Moderate

Tue. April 17

08:30

Building Permits

Mar

710K

 

717K

Moderate

Tue. April 17

09:15

Capacity Utilization

Mar

78.5%

 

78.4%

Moderate

Tue. April 17

09:15

Industrial Production

Mar

0.2%

 

0.0%

Moderate

Thu. April 19

08:30

Jobless Claims (Initial)

4/14

375K

 

380K

Moderate

Thu. April 19

10:00

Existing Home Sales

Mar

4.62M

 

4.59M

Moderate

Thu. April 19

10:00

Philadelphia Fed Index

Apr

10.3

 

12.5

HIGH

The material contained in this newsletter is provided by a third party to real estate, financial services and other professionals only for their use and the use of their clients. The material provided is for informational and educational purposes only and should not be construed as investment and/or mortgage advice. Although the material is deemed to be accurate and reliable, we do not make any representations as to its accuracy or completeness and as a result, there is no guarantee it is without errors.

Mortgage Success Source, LLC is the copyright owner or licensee of the content and/or information in this email, unless otherwise indicated.   Mortgage Success Source, LLC does not grant to you a license to any content, features or materials in this email.   You may not distribute, download, or save a copy of any of the content or screens except as otherwise provided in our Terms and Conditions of Membership, for any purpose.

 
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